eBay profits up 22 percent on listing gains

It's not a bad week for eBay.

First the company defended itself successfully against a trademark lawsuit filed by jeweler Tiffany, and now the company has said that profits jumped 22 percent from last year. None of this impressed Wall Street much.

The Web's largest online auctioneer said after the close of trading Wednesday that second-quarter net earnings grew to $460.3 million, or 35 cents a share, up from $375.8 million a year ago. The boost came from an increase in item listings and sales growth at the company's PayPal division.

The company's share price closed up 4.5 percent to $28.10, but surrendered the gains following the earnings report. The stock fell more than 7 percent to $26.10 in in after-hours trading.

Apparently, investors were less than enthused with eBay's third-quarter outlook. Excluding some costs, eBay predicted that it will report a profit between 39 cents and 41 cents a share, on sales of about $2.15 billion.

Analysts had expected earnings of 41 cents on revenue of $2.17 billion.

On Monday, eBay won a court victory against Tiffany. The jeweler accused eBay of profiting from sales of counterfeit Tiffany goods, but the judge in the case found that it's up to brand owners to police for phony products.

[Anonymous Hero]

Incidentally, my eBay seller income declines 35%.

Is there a future for this company if it continues to rape the people who helped them build it?

[humanssssss]

ebay will die.

[ocdgirl2000]

you might want to check the ebay forums to see the rest of the information, including the telephone conference call interview with none other than Mr D., that occurred a few hours after the market closed and the "good news" came out. The marketplaces sector, which is 60% of the company, is going to be behind next quarter due to the 3 point lag that no one seems to be able to explain away...